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  2. 2. INTRODUCTION TO ECONOMICS <ul><li>It includes : </li></ul><ul><li>Definition and Meaning of Economics </li></ul><ul><li>Dimensions of Economics </li></ul><ul><li>Positive and Normative economics </li></ul>
  3. 3. DEFINITION OF ECONOMICS <ul><li>According to Spencer and Siegelman, “Economics is the integration of economic theory with business practice for the purpose of facilitating decision making and forward planning by management. </li></ul>
  4. 4. MEANING OF ECONOMICS <ul><li>Economics is the social science that studies the production, distribution and consumption of goods and services. </li></ul><ul><li>The term “economics” comes from the Greek word “oikos”(house) and “nomos”(rules), rules of the house. </li></ul>
  5. 5. DIMENSIONS OF ECONOMICS <ul><li>Dimensions of economics is divided into various ways : </li></ul><ul><li>Microeconomics & Macroeconomics </li></ul><ul><li>Positive & Normative economics </li></ul>
  6. 6. MICROECONOMICS <ul><li>It is a branch of economics that studies how individuals, households and firms make decisions to allocate limited resources typically in market where goods or services are being bought and sold. </li></ul>
  7. 7. MACROECONOMICS <ul><li>It is a branch of economics that deals with the performance, structure and behavior of the economy as a whole. </li></ul>
  8. 8. POSITIVE ECONOMICS <ul><li>It is the branch of economics that concerns the description and explanation of economic phenomena. It focuses on facts and cause-and-effect relationships. It includes the development and testing of economic theories. </li></ul>
  9. 9. NORMATIVE ECONOMICS <ul><li>It is the branch of economics that incorporates value judgments about what the economy should be like or what particular policy actions should be recommended to achieve a desirable goal. </li></ul>